1.1 © 2007 by Prentice Hall 12 Chapter Ethical and Social Issues in Information Systems

1.2 © 2007 by Prentice Hall STUDENT OBJECTIVES Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems What ethical, social, and political issues are raised by information systems? What specific principles for conduct can be used to guide ethical decisions?

1.3 © 2007 by Prentice Hall STUDENT OBJECTIVES Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Why do contemporary information systems technology and the Internet pose challenges to the protection of individual privacy and intellectual property? How have information systems affected everyday life?

1.4 © 2007 by Prentice Hall Is Your Student Data on Loan? Problem: Student loan data was difficult for universities and lenders to acquire. Solutions: The National Student Loan Data System (NSLDS) organized this information for easy access by both groups. Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.5 © 2007 by Prentice Hall Is Your Student Data on Loan? However, the database was being used inappropriately by loan companies and had to be temporarily disabled to add security measures. Demonstrates IT’s role in organizing and distributing information. Illustrates the dangers inherent in using digital databases to store important information. Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.6 © 2007 by Prentice Hall Is Your Student Data on Loan? Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.7 © 2007 by Prentice Hall Understanding Ethical and Social Issues Related to Systems Recent cases of failed ethical judgment in business Enron, WorldCom, Parmalat In many, information systems used to bury decisions from public scrutiny Ethics Principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviors Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.8 © 2007 by Prentice Hall Understanding Ethical and Social Issues Related to Systems Information systems and ethics Information systems raise new ethical questions because they create opportunities for: Intense social change, threatening existing distributions of power, money, rights, and obligations New kinds of crime Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.9 © 2007 by Prentice Hall A Model for Thinking About Ethical, Social, and Political Issues Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Society as a calm pond IT as rock dropped in pond, creating ripples of new situations not covered by old rules Social and political institutions cannot respond overnight to these ripples—it may take years to develop etiquette, expectations, laws Requires understanding of ethics to make choices in legally gray areas

1.10 © 2007 by Prentice Hall Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Figure 12-1 The introduction of new information technology has a ripple effect, raising new ethical, social, and political issues that must be dealt with on the individual, social, and political levels. These issues have five moral dimensions: information rights and obligations, property rights and obligations, system quality, quality of life, and accountability and control. The Relationship Among Ethical, Social, Political Issues in an Information Society

1.11 © 2007 by Prentice Hall Five Moral Dimensions of the Information Age 1.Information rights and obligations 2.Property rights and obligations 3.Accountability and control 4.System quality 5.Quality of life Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.12 © 2007 by Prentice Hall Key Technology Trends That Raise Ethical Issues Doubling of computer power More organizations depend on computer systems for critical operations Rapidly declining data storage costs Organizations can easily maintain detailed databases on individuals Networking advances and the Internet Copying data from one location to another and accessing personal data from remote locations are much easier Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.13 © 2007 by Prentice Hall Key Technology Trends That Raise Ethical Issues Advances in data analysis techniques Companies can analyze vast quantities of data gathered on individuals for: Profiling Combining data from multiple sources to create dossiers of detailed information on individuals Nonobvious relationship awareness (NORA) Combining data from multiple sources to find obscure hidden connections that might help identify criminals or terrorists Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.14 © 2007 by Prentice Hall Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Credit card purchases can make personal information available to market researchers, telemarketers, and direct-mail companies. Advances in information technology facilitate the invasion of privacy.

1.15 © 2007 by Prentice Hall Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Figure 12-2 NORA technology can take information about people from disparate sources and find obscure, nonobvious relationships. It might discover, for example, that an applicant for a job at a casino shares a telephone number with a known criminal and issue an alert to the hiring manager. Nonobvious Relationship Awareness (NORA)

1.16 © 2007 by Prentice Hall Interactive Session: Organizations Data For Sale Understanding Ethical and Social Issues Related to Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Read the Interactive Session and then discuss the following questions: Do data brokers pose an ethical dilemma? Explain your answer. What are the problems caused by the proliferation of data brokers? What people, organization, and technology factors are responsible for these problems? How effective are existing solutions to these problems? Should the U.S. federal government regulate private data brokers? Why or why not? What are the advantages and disadvantages?

1.17 © 2007 by Prentice Hall Ethics in an Information Society Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Basic concepts for ethical analysis Responsibility: Accepting the potential costs, duties, and obligations for decisions Accountability: Mechanisms for identifying responsible parties Liability: Permits individuals (and firms) to recover damages done to them Due process: Laws are well known and understood, with an ability to appeal to higher authorities

1.18 © 2007 by Prentice Hall Ethics in an Information Society Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Ethical analysis: A five-step process 1.Identify and clearly describe the facts 2.Define the conflict or dilemma and identify the higher-order values involved 3.Identify the stakeholders 4.Identify the options that you can reasonably take 5.Identify the potential consequences of your options

1.19 © 2007 by Prentice Hall Ethics in an Information Society Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Candidate Ethical Principles Golden Rule Do unto others as you would have them do unto you Immanuel Kant’s Categorical Imperative If an action is not right for everyone to take, it is not right for anyone Descartes' rule of change If an action cannot be taken repeatedly, it is not right to take at all

1.20 © 2007 by Prentice Hall Ethics in an Information Society Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Candidate Ethical Principles (cont.) Utilitarian Principle Take the action that achieves the higher or greater value Risk Aversion Principle Take the action that produces the least harm or least potential cost Ethical “no free lunch” rule Assume that virtually all tangible and intangible objects are owned by someone unless there is a specific declaration otherwise

1.21 © 2007 by Prentice Hall Ethics in an Information Society Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Professional codes of conduct Promulgated by associations of professionals E.g. AMA, ABA, AITP, ACM Promises by professions to regulate themselves in the general interest of society Real-world ethical dilemmas One set of interests pitted against another E.g. Right of company to maximize productivity of workers vs. workers right to use Internet for short personal tasks

1.22 © 2007 by Prentice Hall Information Rights: Privacy and Freedom in the Internet Age The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Privacy: Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state. Claim to be able to control information about yourself In U.S., privacy protected by: First Amendment (freedom of speech) Fourth Amendment (unreasonable search and seizure) Additional federal statues (e.g. Privacy Act of 1974)

1.23 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Fair information practices: Set of principles governing the collection and use of information Basis of most U.S. and European privacy laws Based on mutuality of interest between record holder and individual Restated and extended by FTC in 1998 to provide guidelines for protecting online privacy Used to drive changes in privacy legislation COPPA Gramm-Leach-Bliley Act HIPAA

1.24 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems FTC FIP principles: Notice/awareness (core principle): Web sites must disclose practices before collecting data Choice/consent (core principle): Consumers must be able to choose how information is used for secondary purposes Access/participation: Consumers must be able to review, contest accuracy of personal data

1.25 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems FTC FIP principles (cont.) Security: Data collectors must take steps to ensure accuracy, security of personal data Enforcement: Must be mechanism to enforce FIP principles

1.26 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems European Directive on Data Protection: Requires companies to inform people when they collect information about them and disclose how it will be stored and used. Requires informed consent of customer EU member nations cannot transfer personal data to countries without similar privacy protection (e.g. U.S.) U.S. businesses use safe harbor framework S elf-regulating policy and enforcement that meets objectives of government legislation but does not involve government regulation or enforcement.

1.27 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Internet Challenges to Privacy: Cookies Tiny files downloaded by Web site to visitor’s hard drive Identify visitor’s browser and track visits to site Allow Web sites to develop profiles on visitors Web bugs Tiny graphics embedded in messages and Web pages Designed to monitor who is reading message and transmit information to another computer Spyware Surreptitiously installed on user’s computer May transmit user’s keystrokes or display unwanted ads

1.28 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems U.S. allows businesses to gather transaction information and use this for other marketing purposes Online industry promotes self-regulation over privacy legislation However, extent of responsibility taken varies Statements of information use Opt-out selection boxes Online “seals” of privacy principles Most Web sites do not have any privacy policies

1.29 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Technical solutions The Platform for Privacy Preferences (P3P) Allows Web sites to communicate privacy policies to visitor’s Web browser – user User specifies privacy levels desired in browser settings E.g. “medium” level accepts cookies from first-party host sites that have opt-in or opt-out policies but rejects third-party cookies that use personally identifiable information without an opt-in policy

1.30 © 2007 by Prentice Hall Figure 12-3 Cookies are written by a Web site on a visitor’s hard drive. When the visitor returns to that Web site, the Web server requests the ID number from the cookie and uses it to access the data stored by that server on that visitor. The Web site can then use these data to display personalized information. How Cookies Identify Web Visitors The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.31 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Web sites are posting their privacy policies for visitors to review. The TRUSTe seal designates Web sites that have agreed to adhere to TRUSTe’s established privacy principles of disclosure, choice, access, and security.

1.32 © 2007 by Prentice Hall Figure 12-4 P3P enables Web sites to translate their privacy policies into a standard format that can be read by the user’s Web browser software. The user’s Web browser software evaluates the Web site’s privacy policy to determine whether it is compatible with the user’s privacy preferences. The P3P Standard The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.33 © 2007 by Prentice Hall Property Rights: Intellectual Property The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Intellectual property: Intangible property of any kind created by individuals or corporations Three main ways that intellectual property is protected Trade secret: Intellectual work or product belonging to business, not in the public domain Copyright: Statutory grant protecting intellectual property from being copied for the life of the author, plus 70 years Patents: Grants creator of invention an exclusive monopoly on ideas behind invention for 20 years

1.34 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Challenges to Intellectual Property Rights Digital media different from physical media (e.g. books) Ease of replication Ease of transmission (networks, Internet) Difficulty in classifying software Compactness Difficulties in establishing uniqueness Digital Millennium Copyright Act (DMCA) Makes it illegal to circumvent technology-based protections of copyrighted materials

1.35 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Accountability, Liability, Control Computer-related liability problems If software fails, who is responsible? If seen as part of machine that injures or harms, software producer and operator may be liable If seen as similar to book, difficult to hold author/publisher responsible What should liability be if software seen as service? Would this be similar to telephone systems not being liable for transmitted messages?

1.36 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems System Quality: Data Quality and System Errors What is an acceptable, technologically feasible level of system quality? Flawless software is economically unfeasible Three principal sources of poor system performance: Software bugs, errors Hardware or facility failures Poor input data quality (most common source of business system failure )

1.37 © 2007 by Prentice Hall Quality of Life: Equity, Access, and Boundaries The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Negative social consequences of systems Balancing power: Although computing power decentralizing, key decision-making remains centralized Rapidity of change: Businesses may not have enough time to respond to global competition Maintaining boundaries: Computing, Internet use lengthens work-day, infringes on family, personal time Dependence and vulnerability: Public and private organizations ever more dependent on computer systems

1.38 © 2007 by Prentice Hall Computer crime and abuse Computer crime: Commission of illegal acts through use of compute or against a computer system – computer may be object or instrument of crime Computer abuse: Unethical acts, not illegal Spam: High costs for businesses in dealing with spam Employment: Reengineering work resulting in lost jobs Equity and access – the digital divide: Certain ethnic and income groups in the United States less likely to have computers or Internet access The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.39 © 2007 by Prentice Hall Health risks: Repetitive stress injury (RSI) Largest source is computer keyboards Carpal Tunnel Syndrome (CTS) Computer vision syndrome (CVS) Technostress Role of radiation, screen emissions, low-level electromagnetic fields The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems

1.40 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Although some people enjoy the convenience of working at home, the do anything anywhere computing environment can blur the traditional boundaries between work and family time.

1.41 © 2007 by Prentice Hall The Moral Dimensions of Information Systems Essentials of Business Information Systems Chapter 12 Ethical and Social Issues in Information Systems Repetitive stress injury (RSI) is the leading occupational disease today. The single largest cause of RSI is computer keyboard work